OrthoPediatrics (NASDAQ:KIDS) Releases Earnings Results, Beats Expectations By $0.04 EPS

OrthoPediatrics (NASDAQ:KIDS) issued its quarterly earnings results on Tuesday. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.04, FiscalAI reports. The business had revenue of $70.51 million during the quarter, compared to the consensus estimate of $68.21 million. OrthoPediatrics had a negative net margin of 15.72% and a negative return on equity of 8.10%.

Here are the key takeaways from OrthoPediatrics’ conference call:

• Second-quarter revenue rose 15% to a record $70.5 million, led by 26% growth in Trauma & Deformity and more than 20% growth in OPSB. Adjusted EBITDA reached a record $6.8 million, with gross margin improving to 74%.
• Management raised full-year 2026 revenue guidance to $265 million-$269 million, representing 12%-14% growth, while reiterating approximately $25 million of adjusted EBITDA. The company expects positive free cash flow in the second half and free-cash-flow breakeven or better for the full year.
• The multi-year “innovation super cycle” is beginning to contribute through products such as 3P Hip, VerteGlide, and OPSB’s DF2, with additional launches planned through 2027 and beyond. Management expects these products to support higher growth, margins, and returns on capital, while strengthening opportunities for broader hospital contracts.
• Reported Scoliosis revenue declined 9% because of no 7D unit sales in the quarter and lower Brazil set sales, although underlying implant and bracing revenue grew in the mid-teens. Management said demand remains strong and expects 7D sales, VerteGlide adoption, and a strong summer surgery schedule to support future results, but timing remains difficult to predict.
• International revenue increased 22%, led by record European performance and expanding EU MDR approvals, while Brazil’s weaker set sales reflected cash-collection and ordering discipline rather than demand concerns. The company expects European product access and its Brazilian operational changes to provide additional growth over time.

OrthoPediatrics Price Performance

OrthoPediatrics stock traded down $0.17 on Thursday, reaching $22.14. The company’s stock had a trading volume of 189,469 shares, compared to its average volume of 163,813. The business’s fifty day moving average price is $19.18 and its 200 day moving average price is $17.84. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.37 and a current ratio of 5.21. The company has a market cap of $568.66 million, a price-to-earnings ratio of -13.17 and a beta of 0.98. OrthoPediatrics has a twelve month low of $14.42 and a twelve month high of $23.16.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in KIDS. Invesco Ltd. increased its position in OrthoPediatrics by 14.5% in the 4th quarter. Invesco Ltd. now owns 39,002 shares of the company’s stock valued at $693,000 after acquiring an additional 4,925 shares in the last quarter. XTX Topco Ltd bought a new position in OrthoPediatrics in the 4th quarter worth approximately $188,000. Tudor Investment Corp ET AL lifted its holdings in OrthoPediatrics by 59.3% during the 4th quarter. Tudor Investment Corp ET AL now owns 112,996 shares of the company’s stock worth $2,007,000 after buying an additional 42,061 shares in the last quarter. Millennium Management LLC boosted its position in OrthoPediatrics by 48.0% in the 4th quarter. Millennium Management LLC now owns 1,396,495 shares of the company’s stock valued at $24,802,000 after buying an additional 452,840 shares during the last quarter. Finally, Engineers Gate Manager LP bought a new position in OrthoPediatrics in the 4th quarter valued at $226,000. 69.05% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

KIDS has been the topic of a number of recent research reports. BTIG Research reissued a “buy” rating and set a $24.00 target price on shares of OrthoPediatrics in a research report on Friday, May 1st. Needham & Company LLC raised their price objective on shares of OrthoPediatrics from $30.00 to $35.00 and gave the company a “buy” rating in a research note on Wednesday. Canaccord Genuity Group set a $25.00 price target on shares of OrthoPediatrics in a research report on Friday, April 24th. Truist Financial set a $22.00 price objective on OrthoPediatrics in a research report on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of OrthoPediatrics in a research note on Friday, July 17th. Nine research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $25.89.

OrthoPediatrics Company Profile

OrthoPediatrics Corp., founded in 2007 and headquartered in Warsaw, Indiana, is a medical device company dedicated exclusively to providing orthopedic solutions for children. The company focuses on developing, manufacturing and marketing a broad portfolio of implants and instruments designed to address a wide range of pediatric conditions, including trauma, deformity correction, spine disorders and sports injuries.

The company’s product lines include locking plates and screws for upper and lower extremity reconstruction, intramedullary nails for femur and tibia stabilization, and specialized systems such as the MAGEC Magnetic Growth Rod for treatment of early-onset scoliosis.